Among the additions in the upcoming 2.3.0 patch for Diablo III is Kanai's Cube. Blizzard today more fully explained exactly what the new item is capable of, and it sounds like a big deal.
Blizzard had already indicated that the Cube can be used to extract powers from Legendary items and then equip those powers. We now know that doing so consumes the item in the process, but permanently adds the power in question to a collection. Depending on the type of item they originated from, powers will be assigned to either the weapon, armor, or jewelry category. At any time, you can have one power from each of these categories equipped, and you're free to swap between them from the Cube at any time.
When you extract a power, you'll get the "most potent" version of it. Blizzard says this should present players with difficult decisions--getting your hands on a particular power could mean having to sacrifice an item with great stats.
Kanai's Cube also offers players the opportunity to reforge Legendary items, "completely randomizing every roll on the item as though it had dropped brand-new and removing any existing enchants." Reforging gives you a chance of netting an Ancient, but if you reforge an Ancient, it might not remain one.
Other uses for the Cube include removing level requirements from items, converting set items into a different piece from that same set, and converting gems and crafting materials into different types.
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Diablo III - Patch 2.3.0 Preview: Kanai's Cube
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In Diablo lore, Kanai's Cube is meant to be the predecessor to Diablo II's Horadric Cube. Its name, however, comes as a tribute to Kevin Kanai Griffith, a Blizzard artist who was diagnosed with a rare form of cancer in 2012. He continued to work on Diablo III through his treatment, though he unfortunately passed away last October. To honor him, Blizzard decided to name the Cube after him.
The 2.3.0 update that includes Kanai's Cube does not yet have a release date, though we do know it also improves crafting, adds a new zone, and introduces new difficulty levels.